NIH awards $24.7M for veterinary services, with Charles River Laboratories securing a significant portion

Contract Overview

Contract Amount: $24,669,043 ($24.7M)

Contractor: Charles River Laboratories, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2002-05-30

End Date: 2007-07-08

Contract Duration: 1,865 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: VETERINARY/ANIMAL CARE SERVICES

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.7 million to CHARLES RIVER LABORATORIES, INC. for work described as: VETERINARY/ANIMAL CARE SERVICES Key points: 1. Analysis indicates a fair value for money, considering the specialized nature of the services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators appear moderate, with contract duration and type needing careful monitoring. 4. Performance context is tied to critical research and development activities within the life sciences. 5. This contract positions Charles River Laboratories as a key player in supporting federal biomedical research.

Value Assessment

Rating: fair

The contract's value of approximately $24.7 million over its period of performance appears reasonable given the specialized nature of veterinary and animal care services required for research. Benchmarking against similar contracts is challenging without more granular data on service specifics and scope. However, the Cost Plus Fixed Fee (CPFF) structure suggests that while direct costs are reimbursed, the contractor's profit is fixed, providing some cost control for the government. The duration of the contract (over 5 years) also implies a substantial scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a degree of competition, though the specific number of bidders can be a limited indicator of robust price discovery without knowing the pool of potential offerors. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible pricing and quality by allowing a wide range of qualified contractors to compete.

Public Impact

The primary beneficiaries are researchers at the National Institutes of Health (NIH) who rely on these services for the ethical and effective conduct of biomedical research. Services delivered include essential veterinary care, animal husbandry, and related support crucial for laboratory animal studies. The geographic impact is primarily within the facilities where NIH conducts its research, likely concentrated in areas with significant federal research presence. Workforce implications include the employment of specialized veterinary technicians, veterinarians, and animal care staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in CPFF contracts if not closely managed.
Reliance on a single contractor for critical research support services could pose a risk if performance issues arise.
The long contract duration may reduce flexibility to adapt to changing research needs or technological advancements.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Charles River Laboratories is a well-established entity in the animal research services sector.
The contract supports vital federal research initiatives, indicating a clear and important mission.

Sector Analysis

The contract falls within the Research and Development sector, specifically supporting life sciences research. The market for veterinary and animal care services for research is specialized, with a limited number of large, experienced providers. Federal spending in this area is driven by the needs of agencies like NIH, CDC, and FDA, which rely heavily on animal models for scientific advancement. Comparable spending benchmarks are difficult to establish without detailed service scope, but federal investment in biomedical R&D is substantial.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the specialized nature of veterinary and animal care services for research, it is likely that larger, established firms with specific expertise and infrastructure are best positioned to compete. Subcontracting opportunities for small businesses might exist for ancillary services, but the primary award is to a large entity.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract databases, though specific performance metrics and detailed cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Support for Biomedical Research
Laboratory Animal Welfare Programs
Research and Development Services
Veterinary Services Contracts
National Institutes of Health (NIH) Operations

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Fixed Fee contract type requires close monitoring.
Limited number of bidders may impact price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.7 million to CHARLES RIVER LABORATORIES, INC.. VETERINARY/ANIMAL CARE SERVICES

Who is the contractor on this award?

The obligated recipient is CHARLES RIVER LABORATORIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2002-05-30. End: 2007-07-08.

What is the track record of Charles River Laboratories with federal contracts, particularly with NIH?

Charles River Laboratories, Inc. has a substantial history of receiving federal contracts, including numerous awards from agencies such as the Department of Health and Human Services (HHS), of which NIH is a part. Their experience often spans a wide range of services related to preclinical research, drug development, and laboratory animal services. Analyzing their past performance on similar contracts, including any reported issues or successes, would provide further context on their reliability and capability. Federal procurement data indicates they are a significant contractor in this space, suggesting a proven ability to meet federal requirements, though specific contract performance metrics would need detailed review.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development efforts where the scope of work can be uncertain or evolve. In a CPFF contract, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure aims to incentivize efficiency by allowing the contractor to retain any savings if actual costs are below the estimated costs, while the government benefits from a predictable profit margin. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government when requirements are not well-defined, but it carries a higher risk of cost growth if not managed diligently. Other types like Cost Plus Incentive Fee (CPIF) can offer stronger performance incentives.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this agreement?

While specific KPIs are not detailed in the provided summary data, typical performance indicators for veterinary and animal care services contracts include adherence to animal welfare regulations (e.g., Animal Welfare Act, PHS Policy), timeliness and quality of veterinary care provided, accuracy of record-keeping, responsiveness to research staff needs, and compliance with study protocols. The contract likely specifies metrics related to animal health outcomes, disease prevention, and the overall health and well-being of the research animal population. Performance evaluations would assess the contractor's ability to meet these defined standards consistently throughout the contract period.

What is the historical spending trend for veterinary and animal care services at NIH?

Historical spending on veterinary and animal care services at NIH has been substantial and generally increasing, reflecting the agency's significant role in biomedical research that often necessitates the use of animal models. While specific year-over-year figures for this exact contract or category are not provided, NIH's overall budget and its allocation towards research support services indicate a consistent and significant investment. Trends are influenced by research priorities, scientific advancements, and regulatory requirements. Analyzing broader NIH R&D spending patterns and specific contract vehicles for animal support would reveal the scale and evolution of this expenditure over time.

Are there any known risks associated with the specific services provided by Charles River Laboratories under this contract?

Risks associated with veterinary and animal care services contracts generally include potential disruptions to research due to animal health issues, challenges in maintaining specialized staffing, and ensuring strict compliance with ethical and regulatory standards for animal welfare. For Charles River Laboratories specifically, risks could involve the complexity of managing diverse research protocols requiring different animal models and care regimens, ensuring biosecurity within research facilities, and adapting to evolving scientific methodologies. The CPFF structure also introduces a risk of cost escalation if not rigorously monitored by the government contracting officer.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Charles River Laboratories International, Inc. (UEI: 110376014)

Address: 251 BALLARDVALE ST, WILMINGTON, MA, 06

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,853,618

Exercised Options: $24,669,043

Current Obligation: $24,669,043

Timeline